-3 C
Alba Iulia
Monday, January 20, 2020

Wood to sell nuclear business for £250m

Subscribe to our newsletter

We will never spam , sell or share your details

John Wood Group PLC is to sell its nuclear business to a subsidiary of Jacobs for a cash consideration of £250 million (around $305 million) representing a multiple of approximately 12.4x based on 2018 EBITDA of £20.2 million ($26.3 million).

Closing is conditional upon, among other things, obtaining anti-trust clearance from the Competition and Markets Authority (“CMA”) and is currently anticipated before the end of Q1 2020.  Both parties have agreed that Jacobs will pay a fee of £7.5 million (over $9 million) to Wood in certain circumstances where the transaction is not cleared by the CMA. The cash proceeds from the divestment will be used to reduce debt and will enable Wood to take a significant step towards achieving its target leverage policy.

David Kemp, Wood’s Chief Financial Officer, said: “The sale of our nuclear business follows other recent divestments and marks a significant step towards achieving Wood’s target leverage policy. Although our nuclear business is a strong UK player and has performed well, we see better opportunities to develop clear global leadership positions across other parts of our business.” 

The Wood nuclear business designs, delivers and maintains strategic and complex nuclear assets for customers primarily in the UK. In 2018, the profit before tax for the year amounted to $14.2 million and gross assets at year-end amounted to $464 million.

Advertisement
Aberdeen
broken clouds
4.8 ° C
8.9 °
0.6 °
70 %
2.1kmh
53 %
Mon
7 °
Tue
9 °
Wed
10 °
Thu
8 °
Fri
8 °

Follow Us

Our Other Titles

North-East property consultants beat market slump with...

FG BURNETT, one of the north-east of Scotland’s leading commercial property consultants has enjoyed a strong 2019, recording 92 commercial property transactions across the...

A new traffic light system to be...

A NEW traffic light system looks to be installed on the Kingswells south roundabout on the city bypass (AWPR/B-T) to improve safety of the...

Aberdeen City Heritage Trust helping buildings shape...

SPECIALISTS will be on hand next week at the Arts Centre in King Street, Aberdeen, to offer advice on repairing the city’s granite heritage...

Logging specialist READ Cased Hole announces new...

WORLD-leading cased hole logging specialist, READ Cased Hole, has revamped its senior leadership team by appointing Bruce Melvin, formerly CFO, to the role of...

More Articles Like This